Key insights
- The post discusses a user's dilemma on how to allocate funds in an individual brokerage account using a Dollar-Cost Averaging (DCA) strategy. The user is deciding between buying more of stocks that are currently down to lower the cost basis or adding to winning positions. There is no direct US market influence.
I have an amount of money deposited weekly as I find that to be the easiest way for me to continuously contribute to my investing and retirement accounts. Because of this I’m essentially DCA’ing on a weekly basis. In retirement accounts it’s pretty simple because almost all of it goes to VOO but my individual account I mainly pick individual stocks. My question is, should I be putting that money into positions that are down but I believe in in order to lower my cost basis, or should I bolster my position into my winners because they’re doing well and I expect them to continue to do so in the future? Would love to hear opinions on either way and why you do it like that.
Side note: if you are going to comment saying I should just pull it all and put it into ETF’s just save your breath. I know the pros and cons already and am effectively doing that with my retirement accounts, no new info on that subject needed.